Most People Don’t Understand the Benefits of Credit Unions
Many people assume credit unions are just another small bank and don’t realize the advantages they offer: member ownership, lower fees, better rates, local decision-making, digital convenience, and a member-focused approach.
This gap is especially pronounced with younger generations: 30% of Gen Z and 21% of Millennials don’t realize credit unions are an option for them. Even more concerning, Gen Z and Millennials together make up only a fraction of total membership—with as little as 4% of Gen Z and 5% of Millennials currently holding membership.
The average age of a credit union member is 53, compared to the national median age of 38.5. While the credit union model aligns closely with the values of Gen Z and Millennials, a lack of awareness and misaligned messaging are threatening the long-term sustainability of the movement.
For credit union executives, this misunderstanding isn’t just a marketing issue—it’s a growth barrier. If potential members don’t understand your unique value, they won’t join, limiting growth and impact on the community.
At Marshall Advertising, we’ve spent decades helping credit unions communicate their value. Raising awareness is essential for building trust and long-term success.
The Strategic Threat of Low Awareness About Credit Union Benefits
People often misunderstand credit unions, thinking they are small, inconvenient, or lack modern banking tools like mobile apps and online services. In reality, credit unions provide full-service digital banking, mobile apps, and nationwide ATM networks, offering convenience without sacrificing personalized service.
The stakes are high: 79% of Gen Z and 69% of Millennials currently use a large bank as their primary financial institution. More than 8 in 10 Gen Z “would-be switchers” say they would choose another national bank as their next option—not because they believe banks offer better products, but because banks have done a better job meeting them in digital spaces and telling their story.
If credit unions don’t communicate their benefits clearly and consistently, they risk losing an entire generation of potential members.
Member-Owned Structure: A Core Benefit of Credit Unions
A key difference between credit unions and banks is member ownership. Members have voting rights and a say in governance. Profits aren’t distributed to shareholders—they’re returned to members as better rates, lower fees, and reinvestments into the community.
This ownership structure fuels deep community connections. Credit unions sponsor local sports teams, support charity initiatives, fund financial literacy programs, and invest in neighborhood development. Events like International Credit Union (ICU) Day provide powerful opportunities to spotlight this community-first mission—but the message should be carried year-round through sponsorships, charity partnerships, and grassroots engagement.
How Credit Unions Can Communicate Their Benefits Effectively
Messaging should focus on four key pillars:
- Member-Owned Advantage: Explain how your structure returns profits to members through better rates and lower fees.
- People Helping People: Share authentic stories that show your credit union’s real-world impact.
- Tangible Benefits: Highlight what sets you apart, like lower fees, higher savings yields, and local decision-making.
- Community Commitment: Showcase how you invest in members and neighborhoods, with ICU Day as a celebration of those efforts.
Beyond messaging, here are concrete actions credit unions can take:
- Educational content campaigns (blogs, videos, social posts) that explain how credit unions differ from banks.
- Community events like financial literacy workshops or open houses.
- Member testimonials that highlight real-world results.
- Targeted digital campaigns that simplify your benefits for younger, digital-first audiences.
- Ongoing visibility of your unique benefits—not just on ICU Day, but across every touchpoint year-round.
Reaching the Right Audience to Maximize Credit Union Benefits
Awareness only matters if your message reaches the right people. Strong campaigns blend multiple channels:
- TV & Streaming: Broad visibility for top-of-funnel awareness.
- Digital & Social Media: Hyper-targeted campaigns for younger, digitally savvy audiences.
- Community Partnerships & Local Sponsorships: Deep credibility built through sports integrations, charity initiatives, and neighborhood involvement.
Turning Awareness of Credit Union Benefits Into Membership Growth
Awareness is only the first step. The ultimate goal is to convert understanding into action:
- Attract new members who recognize your credit union’s value.
- Strengthen your brand and stand out from competitors.
- Drive loyalty and referrals that fuel sustainable growth.
For credit union executives, addressing the awareness gap is not optional—it’s essential. The institutions that actively educate, connect, and engage their audiences today—from grassroots programs to annual celebrations like ICU Day—are the ones that will build stronger, more resilient communities tomorrow.
Don’t Wait: Make the Benefits of Your Credit Union Impossible to Ignore
Most people don’t understand the benefits of credit unions—but that’s an opportunity. With clear messaging, mobile-friendly tools, strong community involvement, and a smart media strategy, credit unions can showcase their value and drive membership growth.
At Marshall Advertising, we combine deep credit union expertise with smart media planning to ensure your campaigns reach the right audience, maximize engagement, and deliver measurable ROI. From national media strategies to local sponsorship activations, we help credit unions turn awareness into membership growth.
Don’t wait for people to figure out your value—show them. Make your credit union clear, visible, and impossible to ignore.
